The income tax filing season is upon us. Salaried employees should have received their Form-16 from their employers and can now start filing their income tax returns (ITRs). E-filing has made the process straightforward and accessible, enabling individuals to file from the comfort of their homes. Nevertheless, the procedure can be overwhelming, particularly for those filing for the first time.
1. Total Taxable Income: Includes gross earnings from salary and other sources, minus tax-saving deductions.
2. New vs. Old Tax Regime: Decide between the new or old tax regime with deductions and benefits. Use online tax calculators to choose the option that minimizes your tax liability.
3. Form 16: A TDS certificate from your employer detailing your salary, deductions claimed, and exemptions availed, essential for filing your ITR.
4. Review Form 26AS: Summarizes income on which TDS has been deducted, crucial for accurate tax filing.
5. Annual Information Statement (AIS): Includes details like interest income, dividends, securities transactions, and foreign remittances, pre-filled in your ITR form.
6. ITR Forms to Choose:
- ITR-1: For individuals with income from salary, one house property, and other sources.
- ITR-2: For individuals and HUFs without business income.
- ITR-3: For individuals and HUFs with income from business or profession.
- ITR-4: For presumptive income from business or profession.
7. Documents Needed: PAN card, Aadhaar details, investment proofs, home loan interest certificate, and insurance premium payment receipts.
8. Verify Your ITR: After filing, verify your return online via Aadhaar OTP or offline by sending a signed ITR-V form to CPC, Bengaluru, within 30 days.
Submit your income tax returns by July 31st of each financial year to avoid penalties.
These crucial tips will help first-time taxpayers ensure a smooth and accurate filing process.
